Aurobindo Pharma opened over 2.5% lower at Rs.804.20, going down to an intraday low at Rs.754.45, not too far from its 10% LC of the day at Rs.743.15. Volumes are up over 4.5 times.
The company, for Q1FY22, posted a 2% (YoY) decline in consolidated net profit at Rs.770 crore and this was thanks to the 18% decline in total tax outgo and over 3% reduction in total expenses.
Its revenue from operations fell 4% at Rs.5702 crore. Despite the poor show, the company declared an interim dividend of Rs 1.50 per share.
The market is also not happy with its decision to acquire a 51% stake in generic veterinary pharma firm Cronus Pharma Specialties India for Rs 420 crore ($56 million). The company said the acquisition is expected to be completed in eight weeks and that it will pay cash for the stake.